A New Oil World: The Game Has Changed, but How? Africa Is Becoming a Major New Player in the New World Hydrocarbon Order

• Published in: American foreign policy interests Vol. 35; no. 6; pp. 352 - 359
• Main Author: Leonard, Ray
• Format: Journal Article
• Language: English
• Published: Philadelphia Taylor & Francis Group 01.11.2013; Taylor & Francis Ltd
• Subjects: Africa; African Gulf of Guinea; Arabian and Russian conventional oil dominance; Atlantic margin unconventional oil and gas; continued high prices; Cost; East Africa; East African gas discoveries; Energy; Energy resources; Europe; Foreign policy; Games; high-cost production; hydraulic fracturing; Hydrocarbons; Natural Gas; North Africa; North America; Oil products; Petroleum; Petroleum industry; Politics; Pollution control; Prices; Production; Russia; Russian Federation; ultra-deep-water; United States; World order; North America; Europe; Africa; Russia; ANE, Europe
• ISSN: 1080-3920; 1533-2128
• DOI: 10.1080/10803920.2013.855552

World oil production will rise considerably during the next decade. However, the oil is found in ultra-deep-water fields and by hydraulic fracturing, both of which involve high cost. Thus, world oil prices will necessarily remain high to keep the unconventional sources operating. Most of the unconventional deep-water fields are in Africa and North America. Production from these sources will help the United States and Europe reduce their dependence on oil from the Arabian Gulf and Russia, the major low-cost conventional producers. The newer high-cost nonconventional sources will reach peak production within a decade and then will start to decline. In the longer term, abundant, less polluting natural gas apparently will be the answer to the world's energy needs. Major gas fields have been discovered recently in East Africa. In general, Africa is the focus of increasing political and investor attention as it becomes a bigger player in oil and gas.